Receipt Payment Methods

Overview

Configure the payment methods available for your receipts to accommodate various customer preferences and business requirements.

Receipt payment methods can be used to define how you accept payments from customers, or make payments vendors. They can be configured with costs or account overrides to streamline your accounting processes and cost calculations for moving money in and out of your organization's accounts via different payment methods.

This is always assume to be a cost incurred by you, on the receipt assosciated cash account, and will be recorded as an expense in the general ledger, and can have tax calculations automated on it as well.

Receipt Payment Method Form Explained

  1. Internal Name: Enter a unique internal identifier for the payment method. This is used internally for your team on the Mezan dashboard, but is not displayed to customers.
  2. Display Name: Specify the name that will be displayed to users when selecting this payment method. This is what will be displayed to customers when this payment method is selected on a receipt. This is useful incase you need different internal names for different card types for example, which have different costs associated with them, but the customer just needs to see it is a "Card Payment".
  3. Receipt Type: Select one of the following:
    • Collection Receipt: For methods used to collect payments. This will be available in sales receipts, and in general receipts of type "Collection".
    • Payment Receipt: For methods used to make payments. This will be available in purchasing receipts, and in general receipts of type "Payment".
  4. Cash Account: Select the accounting cash account this payment method will be linked to. This is optional, if selected, it will override and lock the cash account in any transaction that uses this payment method. This is useful in cases where accepting card payments is always linked to a specific bank account. This also takes effect on the POS terminal if it is enabled for this payment method, it will override the bank account cash box configuration for this payment method.
  5. Status Options
    • Enabled: Toggle on to make this payment method available for use in the app. You can disable it without deleting it, to prevent it from being available for use in your organization temporarily.
    • POS Enabled: Toggle on to make this payment method available at point-of-sale. This will also require the "Point of Sale Access" permission to be enabled for the payment method.
  6. Cost Configuration
    1. Has Cost: Toggle on if this payment method incurs processing fees. This is typically true for card payment or bank transfer methods.
    2. Cost Name: Enter a name for the processing fee (e.g., "Card Processing Fee"). This will be attached to the receipt details.
    3. Fixed Cost: Enter any fixed amount charged per transaction. This will be incurred on the cash account associated with the receipt. This is useful for cases where the processing fee is a fixed amount per transaction, such as a flat fee for a card transaction or a bank transfer. It can be combined with the cost percentage.
    4. Cost Percent: Enter any percentage-based fee charged on the transaction amount. This will be incurred on the cash account associated with the receipt, as a percentage of the transaction amount. It will be added to the fixed cost amount.
    5. Expense Account: Select the account where processing fees will be recorded. This will be the account where the processing fees will be recorded as an expense.
    6. Tax Category: Assign the appropriate tax category for the costs associated with this payment method. The tax will be automatically calculated and recorded on the tax account for the payment method costs.

Usage Scenarios

Payment methods configured here are particularly useful for:

  1. Accepting card transactions
  2. Managing automated payment methods
  3. Tracking payment processor fees
  4. Routing payments to different accounts based on the payment method selected automatically
  5. Maintaining consistent accounting for different payment types, with automatic tax calculations

Best Practices

When payment methods are defined, they are required to be selected when creating a receipt. If a payment method is not selected, the system will not allow the receipt to be saved.

  1. Always create an option for "Cash" as a payment method, in this method it's best to leave the cash account settings blank so it can be used for any cash transaction, and usually has no costs associated with it.
  2. Create a separate payment method for each type of card or digital payment to accurately track fees.
  3. Ensure the correct cash account is linked to maintain accurate financial records and routing of funds. Or skip it if the payment method may be used for different cash accounts.
  4. Review and update costs regularly to reflect current processing fees incurred on you by financial service providers.
  5. Use clear and descriptive names that will be clear to your team using Mezan and your customers.